This credit card features a higher cash back earning for common purchases like at U.S. supermarkets and gas stations with no annual fee (see rates and fees). On top of that, American Express is offering a $150 statement credit when you spend $1,000 in the first three months. This is a pretty good card, with a great offer, for no annual fee.

Blue Cash Everyday® Card from American Express

One of the biggest advantages to the Blue Cash Everyday® Card from American Express is that you have the opportunity to super-charge your cash back amount on purchases that you make each day. You can also receive a welcome bonus with the Blue Cash Everyday® Card from American Express. If you spend $1,000 in the first three months of your card membership, you will receive a $150 credit statement.

Finally, it’s a nice touch to receive a 0% APR on purchases and balance transfers for the first 15 months (then a variable rate, currently 15.24% to 26.24%, based on your creditworthiness (see rates and fees). This provides you some breathing room on purchases and balance transfers, although you will pay a balance transfer fee if you take advantage of this offer.

Features

Tiered rewards that offer higher cash back on every day purchases like at U.S. supermarkets and gas

0% APR for 15 months on balance transfers and purchases

Welcome bonus of $150 statement credit after you make $1,000 in purchases in the first 3 months

No annual fee

Interest rate: 15.24% - 26.24%, variable

Card Benefits

The biggest benefit to this rewards card is the tiered cash back. With this credit card, you earn 3% cash back on qualified purchases at U.S. supermarkets (up to $6,000 per year) and 2% cash back on qualified U.S. gas station purchases. All other purchases offer 1% cash back. Because many households spend regularly at supermarkets and on gas, it’s easy to see why this card can be a good choice.

With this credit card, you don’t have to worry about signing up for quarterly rotating categories. You automatically see higher cash back on specific purchases. These are hassle-free rewards that are redeemed for cash back on your statement. And the fact that this credit card has no annual fee is also an advantage. The rewards and the welcome bonus are reasonably generous for a card without an annual fee.

Drawbacks

The main drawback to the Blue Cash Everyday® Card is the fact that there is a rewards cap on the 3% cash back at supermarkets. You can only earn your highest cash back reward on up to $6,000 spent in a year. After that, your cash back rate at supermarkets drops to 1%.

Another drawback is the $5 or 3% balance transfer fee associated with this credit card (see rates and fees). If you decide to transfer a balance, the cost might be higher than you want to pay. If the primary reason for getting a credit card is a balance transfer to help you pay down debt faster, a card with no balance transfer might be a better fit.

With the Blue Cash Everyday® Card, the rewards are also somewhat inflexible. You won’t receive Membership points. Instead, you receive rewards that are only redeemable for statement credits. This means you can’t access other rewards programs from American Express with your rewards.

Finally, consider whether or not it might make more sense to get the Blue Cash Preferred® Card from American Express. This card has a higher cash back earning potential. If you spend more than $65 per week at supermarkets, it might be worth it to pay the annual fee, even with the same cap of $6,000 in spending. Run the numbers to see if you spend enough in qualified supermarket purchases to justify using a different card.

Bottom Line

The Blue Cash Everyday® Card from American Express is a great cash back card for those who want to earn rewards for everyday purchases like at U.S. supermarkets and at U.S. gas stations and don’t want to pay an annual fee. The tiered rewards are hassle-free and are applied as a statement credit. The main downside is that your supermarket earnings are capped when you spend $6,000 a year at supermarkets. Additionally, if you spend more than $3,380 per year at supermarkets, you might actually be better off paying the annual fee for the Preferred® version of the card.

For rates and fees of the Blue Cash Everyday® Card from American Express, click here.

Editorial Note: This content is not provided by American Express. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by American Express.

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ABOUT THE AUTHOR

Miranda is a financial journalist and expert. Her work has appeared in numerous publications and she has contributed to NPR and appeared on other radio shows and TV. Miranda writes about money at PlantingMoneySeeds.com.

Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.

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EDITORIAL NOTE

Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.

Credit Cards Explained may earn affiliate commissions from our partners on this page. These commissions do not affect how we select, rate, or review products. To find out more, read our complete terms of use.